Aris Mining Corporation press release
ARIS MINING REPORTS Q3 2024 RESULTS WITH HIGHER GOLD PRODUCTION, INCREASED MARGIN GENERATION AT SEGOVIA AND PRO FORMA $266 MILLION CASH BALANCE
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Canada NewsWire
All amounts are expressed in US dollars unless otherwise indicated.
VANCOUVER, BC , Nov. 12, 2024 /CNW/ - Aris Mining Corporation (Aris Mining or the Company) (TSX: ARIS) (NYSE-A: ARMN) announces its full financial and operating results for the three and nine months ended September 30, 2024 (Q3 2024 and YTD 2024, respectively).
| | Q3 2024 | Q2 2024 | YTD 2024 | | Gold production (ounces) (Segovia & Marmato) | 53,608 | 49,216 | 153,591 | | Segovia All-in Sustaining Cost per Ounce Sold (AISC/oz) | $1,540 | $1,571 | $1,515 | | EBITDA[1] | $27.8M | $30.8M | $80.9M | | Adjusted EBITDA 1 | $43.0M | $36.1M | $107.5M | | Net earnings (loss) | $(2.2)M or ($0.01)/share | $5.7M or $0.04/share | $2.7M or $0.02/share | | Adjusted earnings 1 | $12.9M or $0.08/share | $12.7M or $0.08/share | $31.0M or $0.20/share |
Neil Woodyer , CEO of Aris Mining, commented: "In the third quarter of this year we achieved a 9% increase in total gold production over the prior quarter and demonstrated effective cost management at Segovia, as illustrated in Figure 1, with an AISC of $1,540 per ounce sold. The combination of higher gold prices, increased production, and effective cost control led to a 37% increase in AISC margin at Segovia, reaching $44.1 million compared to $32.2 million in Q2, as shown in Figure 2. Our operational focus remains on generating cash flow while advancing our expansion projects at Segovia and Marmato. Over the past 12 months, we have generated Adjusted EBITDA of $147.2 million .
Following Q3, we refinanced our existing $300 million 6.875% Notes with a new 5-year $450 million 8.000% Notes deal, increasing cash reserves and extending maturity. Our current pro forma cash balance has increased to $266 million following the refinancing and receipt of a stream funding installment, as shown in Figure 3. We are well-positioned and funded to deliver on our growth strategy."
| _ | | 1 EBITDA, adjusted EBITDA, adjusted (net) earnings and AISC are non-GAAP financial measures in this document. These measures do not have any standardized meaning prescribed under GAAP, and therefore may not be comparable to other issuers. Refer to the Non-GAAP Measures section in this document for a reconciliation of these measures to the most directly comparable financial measure disclosed in the Company's interim financial statements. |
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Segovia Operations Review
AISC margins at the Segovia Operations continued to improve to $44.1 million in Q3 compared to $32.2 million in Q2. The improvement was driven by rising gold prices, increased gold production and lower AISC costs of $1,540 per ounce. We operate our own mines and collaborate with community-based mining partners, referred to as Contract Mining Partners (CMPs), to increase our total gold production. Some partners work within our infrastructure, while others manage their own mining operations on our tenements. In addition, we purchase high grade mill feed from third-party contractors operating off-title, which further optimizes production and increases operating margins. Cash costs for Owner Mining and On-Title CMPs were $1,145 per ounce, representing a 5% improvement over Q2 2024. This cost reduction was driven by increased production, partially offset by a rise in realized gold prices which negatively impacted the cost of CMP-purchased mill feed. Similarly, purchase and processing costs for high grade mill feed delivered by off-title CMPs increased in Q3 to $1,834 per ounce from $1,790 per ounce in Q2. The increase reflects higher realized gold prices, partially offset by lower average grades of 28.5 g/t Au compared to 29.1 g/t Au in Q2. The Third-Party off-title CMP segment of our business maintained a strong sales margin of $4.9 million in Q3 2024, up from $3.8 million in Q2 2024.
| Total Segovia Operating Information | Q3 2024 | Q2 2024 | Q1 2024 | % Change (Q3 vs Q2) | YTD 2024 | | Average realized gold price ($/ounce sold) | 2,457 | 2,308 | 2,061 | 6 % | 2,280 | | Tonnes milled (t) | 166,868 | 155,912 | 154,425 | 7 % | 477,205 | | Average tonnes milled per day (tpd) | 1,940 | 1,834 | 1,817 | 6 % | 1,864 | | Average gold grade processed (g/t) | 9.23 | 9.14 | 9.42 | 1 % | 9.26 | | Gold produced (ounces) | 47,493 | 43,705 | 44,908 | 9 % | 136,106 | | Cash costs ($/ounce sold) 1 | 1,257 | 1,299 | 1,162 | 3 % | 1,239 | | AISC – total ($/ounce sold) 1 | 1,540 | 1,571 | 1,434 | 2 % | 1,515 |
| Segovia Operating Information by Segment | Q3 2024 | Q2 2024 | Q1 2024 | % Change (Q3 vs Q2) | YTD 2024 | | | | | | | | | Owner Mining & On-title CMPs | | | | | | | Gold produced (ounces) | 39,921 | 36,400 | 39,915 | 10 % | 116,236 | | Gold sold (ounces) | 40,248 | 36,117 | 40,253 | 11 % | 116,618 | | Cash costs per ounce sold – ($ per oz sold) 1 | 1,145 | 1,201 | 1,134 | 5 % | 1,158 | | AISC/oz sold - ($ per oz sold) 1 | 1,483 | 1,527 | 1,439 | 3 % | 1,482 | | AISC sales margin (%) 1,2 | 40 % | 34 % | 30 % | | 35 % | | AISC margin ($'000) 1 | 39,199 | 28,388 | 25,064 | 38 % | 92,650 | | Third-Party Purchased Material (off-title CMPs) | | | | | | | Gold produced (ounces) | 7,572 | 7,305 | 4,993 | 4 % | 19,870 | | Gold sold (ounces) | 7,811 | 7,248 | 5,036 | 8 % | 20,095 | | Purchase & processing cost per ounce ($ per oz sold) 1 | 1,834 | 1,790 | 1,386 | -2 % | 1,706 | | Third-Party sales margin (%) 1,2 | 25 % | 23 % | 33 % | | 25 % | | Third-Party sales margin ($'000) 1,2 | 4,868 | 3,785 | 3,403 | 29 % | 12,056 |
| 1 Non-GAAP financial measures, refer to the Non-GAAP Measures section for a full reconciliation to the most directly comparable financial measure disclosed in the Interim Financial Statements. | | 2 Sales margin is calculated as AISC margin over revenues as disclosed above, sales margin is considered by management to be a useful metric of the operations' profitability. |
Segovia Expansion Project
As announced in Q4 2023, the Segovia expansion project aims to increase processing capacity from 2,000 to 3,000 tonnes per day and is progressing as scheduled. Phase 1 of the Segovia expansion is complete with the newly expanded receiving area for our CMPs fully commissioned and handed over to operations. The new facility began processing material in October 2024 . Phase 2, which involves installing a second ball mill in the former contractor receiving area, is underway and scheduled for completion in Q1 2025, followed by a ramp-up period to reach a production rate of 3,000 tpd in the second half of 2025. The new ball mill is expected to increase throughput and gold production by enabling finer grinding and process efficiency. The total cost of the expansion project is estimated at $15 million , with $8 million spent as of September 30, 2024 .
Marmato Lower Mine Expansion
Aris Mining commenced construction of the new Marmato Lower Mine in Q3 2023 following the receipt of environmental permits in July 2023 . The Lower Mine will access wider porphyry mineralization below the Upper Mine, with both mines estimated to produce a combined 162,000 ounces of gold per year over a 20-year mine life. 2 The site access road and portal face were completed in Q3 2024 and the contractor is preparing to initiate work on the twin declines. Both the semi-autogenous grinding (SAG) and ball mill fabrication are progressing on schedule for completion before the end of 2024. As of the end of September 2024 , the estimated cost to complete the Lower Mine construction was $235 million , of which $122 million will be funded by existing stream financing commitments; resulting in $113 million of cost to complete on a net basis. On November 6, 2024 , Aris Mining received the first $40 million milestone payment under its streaming agreement. Further payments of $40 million and $42 million are expected to be received upon reaching the 50% and 75% construction spend milestones, respectively, next year.
| Marmato Lower Mine – Construction Budget | US$ million | | Total Construction Budget | 280 | | Less: spend to date (as of September 30, 2024) | 46 | | Estimated cost to complete (as of September 30, 2024) | 235 | | Remaining stream financing (at 50% and 75% completion) | 82 | | Net construction budget to be funded by Aris Mining | 153 | | 1 Relates to costs directly associated with the construction of the plant, mining and other surface infrastructure of the Marmato Lower Mine Project, exclusive of costs associated with other ancillary activities supporting the wider Marmato Mine complex. | |
Aris Mining's condensed consolidated interim financial statements for the three and nine months ended September 30, 2024 and related MD&A are available on SEDAR+, in the Company's filings with the U.S. Securities and Exchange Commission (the SEC) and in the Financials section of Aris Mining's website here . Hard copies of the interim financial statements are available free of charge by written request to info@aris-mining.com .
Q3 2024 Conference Call Details
Management will host a conference call on Wednesday, November 13, 2024 , at 9:00 am ET / 6:00 am PT to discuss the results. The call will be webcast and can be accessed at Webcast | Q3 2024 Results Conference Call (choruscall.com) ).
Participants may gain expedited access to the conference call by registering at Diamond Pass Registration (dpregister.com) ). Upon registering, call in details will be displayed on screen which can be used to bypass the operator and avoid the call queue. Registration will remain open until the end of the live conference call.
Participants who prefer to dial-in and speak with a live operator, can access the call by dialing:
Toll-free North America : +1-844-763-8274 International: +1-647-484-8814
After the call, an audio recording will be available via telephone until end of day November 20, 2024 . The recording can be accessed by dialing:
Toll-free in the US and Canada : +1-855-669-9658 International: +1-412-317-0088; and using the access code: 9996142
A replay of the event will be archived at Events & Presentations - Aris Mining Corporation .
| _ | | 2 Refer to the pre-feasibility study on the Marmato Lower Mine Project with an effective date of June 30, 2022, see Section "Qualified Person and Technical Disclosure" |
About Aris Mining
Aris Mining is a gold producer in Latin America , currently operating two mines with expansions underway in Colombia . The Segovia Operations and the Marmato Upper Mine produced 226,000 ounces of gold in 2023. Aris Mining is targeting a production rate of approximately 500,000 ounces of gold per year in the second half of 2026, following a ramp-up period after the Segovia mill expansion scheduled for completion in Q1 2025 and the Marmato Lower Mine's first gold pour in late 2025. Aris Mining also operates the 51% owned Soto Norte joint venture, where studies are underway on a new, smaller scale development plan, with results expected in early 2025. In Guyana , Aris Mining is advancing Toroparu, a gold/copper project. Aris Mining intends to pursue acquisitions and other growth opportunities to unlock value through scale and diversification.
Aris Mining promotes the formalization of small-scale mining units into contract mining partners as this process enables all miners to operate in a legal, safe and responsible manner that protects them and the environment.
Additional information on Aris Mining can be found at www.aris-mining.com , www.sedarplus.ca , and on www.sec.gov .
Cautionary Language
Non-GAAP Financial Measures
Free cash flow, cash costs ($ per oz sold), AISC ($ per oz sold), EBITDA, adjusted EBITDA, adjusted (loss)/earning, sustaining capital and expenditures on growth capital are non-GAAP financial measures and non-GAAP ratios. These measures do not have any standardized meaning prescribed under IFRS or by Generally Accepted Accounting Principles (GAAP) in the United States , and therefore may not be comparable to other issuers. For full details on these measures and ratios refer to the "Non-GAAP Financial Measures" section of the Company's Management's Discussion and Analysis for the three and nine months ended September 30, 2024 and 2023 (MD&A). The MD&A is incorporated by reference into this news release and is available at www.aris-mining.com , on the Company's profile on SEDAR+ at www.sedarplus.ca and in its filings with the SEC at www.sec.gov .
The tables below reconcile the non-GAAP financial measures contained in this news release for the current and comparative periods to the most directly comparable financial measure disclosed in the Company's Q3 2024 interim financial statements.
Cash costs per ounce
Reconciliation of total cash costs by business unit at the Segovia Operations to the cash costs as disclosed above.
| | Three months ended Sept 30, 2024 | Three months ended June 30, 2024 | | | | | | ($000s except per ounce amounts) | Segovia | Marmato | Total | Segovia | Marmato | Total | | Total gold sold (ounces) | 48,059 | 5,710 | 53,769 | 43,366 | 6,103 | 49,469 | | Cost of sales 1 | 66,570 | 16,673 | 83,243 | 62,282 | 14,712 | 76,994 | | Less: royalties 1 | (3,506) | (1,343) | (4,849) | (3,078) | (1,126) | (4,204) | | Add: by-product revenue 1 | (2,665) | (613) | (3,278) | (2,862) | (153) | (3,015) | | Total cash costs | 60,399 | 14,717 | 75,116 | 56,342 | 13,433 | 69,775 | | Total cash costs ($ per oz gold sold) | $1,257 | | | $1,299 | | | | Total cash costs including royalties | 63,905 | | | 59,420 | | | | Total cash costs including royalties
($ per oz gold sold) | $1,330 | | | $1,370 | | | | | | | | | | | | | Three months ended March 31, 2024 | Nine months ended Sept 30, 2024 | | | | | | ($000s except per ounce amounts) | Segovia | Marmato 1 | Total | Segovia | Marmato 1 | Total | | Total gold sold (ounces) | 45,288 | 5,756 | 51,044 | 136,712 | 17,570 | 154,282 | | Cost of sales 1 | 57,949 | 13,384 | 71,333 | 186,801 | 44,769 | 231,570 | | Less: royalties 1 | (3,008) | (1,084) | (4,092) | (9,592) | (3,553) | (13,145) | | Add: by-product revenue 1 | (2,318) | (112) | (2,430) | (7,845) | (878) | (8,723) | | Total cash costs | 52,623 | 12,188 | 64,811 | 169,364 | 40,338 | 209,702 | | Total cash costs ($ per oz gold sold) | $1,162 | | | $1,239 | | | | Total cash costs including royalties | 55,631 | | | 178,956 | | | | Total cash costs including royalties
($ per oz gold sold) | $1,228 | | | $1,309 | | |
| 1 As presented in the Interim Financial Statements and notes thereto for the respective periods. |
Cash costs per ounce
| | | Three months ended Sept 30, 2024 | Three months ended June 30, 2024 | | | | | | ($000s except per ounce amounts) | | Owner & On- title CMP | Off-title CMP | Total | Owner & On- title CMP | Off-title CMP | Total | | Total gold sold (ounces) | | 40,248 | 7,811 | 48,059 | 36,117 | 7,248 | 43,365 | | Cost of sales 1 | | 52,245 | 14,325 | 66,570 | 49,304 | 12,977 | 62,282 | | Less: royalties 1 | | (3,506) | — | (3,506) | (3,078) | — | (3,078) | | Add: by-product revenue 1 | | (2,665) | — | (2,665) | (2,862) | — | (2,862) | | Total cash costs | | 46,073 | 14,325 | 60,399 | 43,364 | 12,977 | 56,342 | | Total cash costs ($ per oz gold sold) | | $1,145 | $1,834 | $1,257 | $1,201 | $1,790 | $1,299 | | | | Three months ended Mar 31, 2024 | Nine months ended Sept 30, 2024 | | | | | | ($000s except per ounce amounts) | | Owner & On- title CMP | Off-title CMP | Total | On-title CMP | Off-title CMP | Total | | Total gold sold (ounces) | | 40,253 | 5,035 | 45,287 | 116,618 | 20,095 | 136,712 | | Cost of sales 1 | | 50,968 | 6,980 | 57,948 | 152,518 | 34,283 | 186,801 | | Less: royalties 1 | | (3,008) | — | (3,008) | (9,592) | — | (9,592) | | Add: by-product revenue 1 | | (2,318) | — | (2,318) | (7,845) | — | (7,845) | | Total cash costs | | 45,643 | 6,980 | 52,622 | 135,080 | 34,283 | 169,363 | | Total cash costs ($ per oz gold sold) | | $1,134 | $1,386 | $1,162 | $1,158 | $1,706 | $1,239 |
| 1 As presented in the Interim Financial Statements and notes thereto for the respective periods. |
All-in sustaining costs (AISC)
Reconciliation of total AISC by business unit at the Segovia Operations to the AISC as disclosed above.
| | Three months ended Sept 30, 2024 | Three months ended June 30, 2024 | | | | | | ($000s except per ounce amounts) | Segovia | Marmato | Total | Segovia | Marmato | Total | | Total gold sold (ounces) | 48,059 | 5,710 | 53,769 | 43,366 | 6,103 | 49,469 | | Total cash costs | 60,399 | 14,717 | 75,116 | 56,342 | 13,433 | 69,775 | | Add: royalties 1 | 3,506 | 1,343 | 4,849 | 3,078 | 1,126 | 4,204 | | Add: social programs 1 | 4,294 | 185 | 4,479 | 2,120 | 151 | 2,271 | | Add: sustaining capital expenditures | 5,423 | 938 | 6,361 | 6,224 | 782 | 7,006 | | Add: lease payments on sustaining capital | 389 | - | 389 | 364 | — | 364 | | Total AISC | 74,011 | 17,183 | 91,194 | 68,128 | 15,492 | 83,620 | | Total AISC ($ per oz gold sold) | $1,540 | | | $1,571 | | | | | | | | | | | | | Three months ended March 31, 2024 | Nine months ended Sept 30, 2024 | | | | | | ($000s except per ounce amounts) | Segovia | Marmato | Total | Segovia | Marmato | Total | | Total gold sold (ounces) | 45,288 | 5,756 | 51,044 | 136,712 | 17,570 | 154,282 | | Total cash costs | 52,623 | 12,188 | 64,811 | 169,364 | 40,338 | 209,702 | | Add: royalties 1 | 3,008 | 1,084 | 4,092 | 9,592 | 3,553 | 13,145 | | Add: social programs 1 | 2,289 | 1,166 | 3,455 | 8,703 | 1,502 | 10,205 | | Add: sustaining capital expenditures | 6,496 | 824 | 7,320 | 18,143 | 2,544 | 20,687 | | Add: lease payments on sustaining capital | 506 | — | 506 | 1,259 | - | 1,259 | | Total AISC | 64,922 | 15,262 | 80,184 | 207,061 | 47,937 | 254,998 | | Total AISC ($ per oz gold sold) | $1,434 | | | $1,515 | | | | | | | | | | |
| 1 As presented in the Interim Financial Statements and notes thereto for the respective periods. |
All-in sustaining costs (AISC)
| | Three months ended Sept 30, 2024 | Three months ended June 30, 2024 | | | | | | ($000s except per ounce amounts) | Owner Mining & On-title CMP | Off-title CMP | Total Segovia | Owner Mining & On-title CMP | Off-title CMP | Total Segovia | | Total gold sold (ounces) | 40,248 | 7,811 | 48,059 | 36,117 | 7,248 | 43,365 | | Total cash costs | 46,073 | 14,325 | 60,399 | 43,364 | 12,977 | 56,341 | | Add: royalties 1 | 3,506 | — | 3,506 | 3,078 | — | 3,078 | | Add: social programs 1 | 4,294 | — | 4,294 | 2,120 | — | 2,120 | | Add: sustaining capital expenditures | 5,423 | — | 5,423 | 6,224 | — | 6,224 | | Add: lease payments on sustaining capital | 389 | — | 389 | 364 | — | 364 | | Total AISC | 59,685 | 14,325 | 74,011 | 55,150 | 12,977 | 68,127 | | Total AISC ($ per oz gold sold) | $1,483 | $1,834 | $1,540 | $1,527 | $1,790 | $1,571 | | | | | | | | | | | Three months ended March 31, 2024 | Nine months ended Sept 30, 2024 | | | | | | ($000s except per ounce amounts) | Owner Mining & On-title CMP | Off-title CMP | Total Segovia | Owner Mining & On-title CMP | Off-title CMP | Total Segovia | | Total gold sold (ounces) | 40,253 | 5,035 | 45,287 | 116,618 | 20,095 | 136,712 | | Total cash costs | 45,643 | 6,980 | 52,623 | 135,080 | 34,283 | 169,363 | | Add: royalties 1 | 3,008 | — | 3,008 | 9,592 | — | 9,592 | | Add: social programs 1 | 2,289 | — | 2,289 | 8,703 | — | 8,703 | | Add: sustaining capital expenditures | 6,496 | — | 6,496 | 18,143 | — | 18,143 | | Add: lease payments on sustaining capital | 506 | — | 506 | 1,259 | — | 1,259 | | Total AISC | 57,942 | 6,980 | 64,922 | 172,777 | 34,283 | 207,060 | | Total AISC ($ per oz gold sold) | $1,439 | $1,386 | $1,434 | $1,482 | $1,706 | $1,515 |
| 1 As presented in the Interim Financial Statements and notes thereto for the respective periods. |
Additions to mineral interests, plant and equipment
| | Three months ended, | Nine months ended, | | | | ($'000) | Sept 30, 2024 | June 30, 2024 | March 31, 2024 | Sept 30, 2024 | | Sustaining capital | | | | | | Segovia Operations | 5,423 | 6,224 | 6,496 | 18,143 | | Marmato Upper Mine | 938 | 782 | 824 | 2,544 | | Total | 6,361 | 7,006 | 7,320 | 20,687 | | Non-sustaining capital | | | | | | Segovia Operations | 16,962 | 16,284 | 11,023 | 44,269 | | Toroparu Project | 1,970 | 2,079 | 1,939 | 5,988 | | Marmato Lower Mine | 10,825 | 19,143 | 14,865 | 44,833 | | Marmato Upper Mine | 10,275 | 1,046 | 2,278 | 13,599 | | Soto Norte | 5,033 | - | - | 5,033 | | Juby Project | 1 | 1 | 3 | 5 | | Total | 45,066 | 38,553 | 30,108 | 113,727 | | Corporate Assets | - | 3,895 | - | 3,895 | | Additions to mining interest, plant and equipment 1 | 51,427 | 49,454 | 37,428 | 138,309 |